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George Washington University *
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Course
6273
Subject
Marketing
Date
May 7, 2024
Type
docx
Pages
14
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Company Overview
✅
Current State and Challenges
The company has only two full-time staff, the two founders. Currently, the company has two clients which makes the Customer Acquisition costs high, word of mouth and community forums
such as Reddit are the main sources of leads and clients. Apart from their website, The AdGoats does not have any online presence such as social media accounts. The company only provides ad management services on Meta, Tiktok, Google, Amazon, and LinkedIn.
In addition, the company is playing in a highly competitive market which poses an additional challenge to its growth and longevity.
Marketing Strategy
The Ad Goats’ marketing strategy is centered on leveraging digital channels effectively to reach the targeted audience and achieve key business objectives. As a ]startup, their primary goals include broadening their business reach, improving ROI through adjusted advertising strategies,
and expanding the product mix to create additional value. To accomplish this, The Ad Goats has
to focus on growing its team, generating quality leads, forming strategic partnerships, and adding value to extend its market presence. They will continuously monitor and optimize advertising strategies to maximize return on investment, utilizing data analytics to refine their approach. Additionally, they will prioritize relationship-building activities to foster customer loyalty and generate positive referrals. This involves engaging with customers through social media, providing excellent customer service, and creating a seamless user experience. The Ad Goats can adjust its pricing model to ensure competitiveness while maintaining profitability and offer free trials or introductory services to attract potential customers. Furthermore, they have to innovate by introducing new services based on market demand and providing value-added services such as training and consultation to establish their services as industry experts. Through these strategies, The Ad Goats aims to attract potential customers, build a loyal following, and achieve sustainable growth in the market. Objective 1: Business Expansion
Goals
:
●
Expand Customer base
●
Hire Talent
●
Mitigate Churn
Why it’s important:
Expanding the business can help the Ad Goats become a leader in its market niche. Growth
allows their business to expand into new geographic markets, acquire more customers, or
provide the next level of service to existing customers they’ve been asking for. By expanding,
The AdGoats can attract a diverse clientele, reducing dependency on a select few clients and
spreading risk. Growth also signals to investors and potential talent that The AdGoats is
ambitious and forward-thinking, making it an attractive place to work and invest. This expansion
supports the firm's aim to not only survive, but to thrive by adapting to changing market
demands and leveraging new technologies that keep them at the forefront of the digital
marketing industry. In essence, growth for The AdGoats means more than increased revenue; it
represents sustainability, resilience, and a commitment to excellence in serving their clients.
Strategy 1:
Team Scale Up The Ad Goats is a startup company that needs to expand its team to grow its business. Currently, they have a team of only four people, which may not be sufficient to handle a large number of leads and provide the best possible customer service. Therefore, scaling up the team
will benefit both business and customer retention. Tactic 1: Hire the top 3 new talents in the next four years to increase the value and expand the business this benefits the individuals and Adgoat’s career aspirations, as well as the company's long-term objectives. Tactic 2: Implement a $500 quarterly bonus program for team members who demonstrate outstanding flexibility in The Ad Goat’s hybrid work setup and excel in delivering exceptional client service during in-person interactions.
Strategy 2: Lead Generation
Definition:
Increasing leads is a process that builds visibility, credibility, trust, and interest from a
specific group of people (potential leads). To reach 15 Clients by the end of the year, it is essential to reach the maximum number of leads possible to cause a positive impact on revenue growth. Tactic1: Perform competitor analysis to identify their marketing strategies, providing a comparison point for finding strengths and weaknesses of The AdGoats and enabling their business to address its weaknesses and expand on opportunities.
Tactic 2: Create a lead magnet such as an e-newsletter and articles. Tactic 3: Utilizing drip/nurture campaigns software tools to touch a lead several times.
Tactic 4: Implement loyalty reward programs to encourage repeat business, purchase deals, and strengthen customer relationships.
Tactic 5: Obtain leads by gathering client information of potential businesses that currently don’t have active ad management or any form of marketing management. This will be the way for the Ad Goats to narrow down their target market and consequently be more efficient with its efforts. Strategy 3: Strategic Partnership
Definition: Develop partnerships with agencies competent in areas of digital marketing other than Ads, providing clients with a wide range of solutions. Clients can receive services from said
agencies under the impression that they are working with The AdGoats.
Tactic 1: Partner with a website development agency to which customers can be referred. A website is a very sticky product, therefore it minimizes churn. Tactic 2: Partner with an agency that can provide physical marketing such as mail marketing, billboards, and physical ads, allowing customers to have an omnichannel marketing presence. Tactic 3: Partner with a social media management agency that can provide content creation and
influencer marketing services.
Tactic 4: Partner with an agency specialized in SEO. Objective 2: Adjust Advertising Strategies to improve ROI
Goals: ●
Refine strategies that are bringing in clients ●
Boost word-of-mouth
●
Cultivate customer relationships
Why it’s important:
Higher ROAs mean the business generates additional revenue for every dollar spent on advertising. It is important to wisely invest every dollar dedicated to advertising efforts since Ad Goats is a relatively new company. Therefore, we suggest reinvesting some of that money into maximizing customer relationships and encouraging word of mouth. WOM is the
activity that brought the most clients to the company, accounting for 5 customers and 80% of revenue. Since officially starting the company, the Ad Goats invested a total of $15,000 in online
ads and currently spends $3,000 - 5,000 per month on it. For the next 3 months, the plan is to keep the online ad budget at $3,000 and then study the possibility of increasing it to $5,000 in the following months. Strategy 1:
Maximize Return on Ad spend
Definition: This plan intends to tighten the online ad/paid media budget and reallocate some of that investment into other activities to foster and grow relationships and incentivize clients to keep recommending the Ad Goats’ services.
Tactic 1: Better segment audience based on demographics/firmographics, interests, and behaviors. Tactic 2: Target small and medium-sized businesses that are looking to improve their online presence or tap into paid media in any way. The company can achieve that by researching local
businesses and reaching out with a sales pitch to gauge their willingness and interest in starting with paid media. Tactic 3: Keep track of KPIs and data and identify patterns in behavior to refine targeting and massaging strategies. Tactic 4: Allocate ad spend on the performance of each variation, focusing more budget on the top-performing ads.
Strategy 2:
Invest in Relationship-Building Activities to Exponentialize Word of Mouth (WOM)
Definition: relationships have been a pivotal aspect in client generation thus far, even more than
online ads; hence the refocusing of marketing strategy to build on such relationships. This plan intends to make clients feel even more special, make the Ad Goats experience more personal, and explore the power of relationship-building to create referrals and business opportunities. Tactic 1: Develop and roll out monthly surveys to identify areas of improvement in client satisfaction. Tactic 2: Continue to improve the referral program in place: in addition to a free month after committing to a 6-month contract, (1) the referring client gets an upgrade in the next month at no extra cost if enrolled in the beginner and intermediate plans, and (2) first-month free deal, where 100% of the client’s investment goes towards campaigns for their company. Tactic 3: Develop targeted email campaigns to nurture relationships with existing clients and keep them engaged with the Ad Goats ( send personalized messages, exclusive offers, and updates on new services or features). Tactic 4: Increase engagement on social media platforms by sharing valuable content, interacting with followers, and hosting interactive events to encourage them to share their experiences and recommend us to their network.
Objective 3: Create Additional Value by Expanding Product Mix
Goals:
●
Increase company value by adding more services to potential and current clients
●
Attract customers who may be interested in other services other than a management of
ads
●
Increase revenue by adding additional streams of products/services Why It’s Important: The Ad Goats currently offer 3 membership plans: a) Starter Plan, which includes strategy and
execution for 1 paid media channel; b) Growth Plan, which includes strategy and execution for 2
paid media channels; and c) Established Plan, which includes strategy and execution for 3 paid
media channels. Each plan includes “initial tracking set up & QA, a media plan, campaign
structuring, ongoing management, and reporting” (The Ad Goats, 2024). Currently, revenue for
The Ad Goats is limited to these 3 plans. If there are few clients, the revenue stream is also low.
According to Medium, 10 digital marketing services are in demand: “inbound marketing, content
production, SEO, social media management, website development, media and performance,
metrics analysis, marketing business intelligence, branding consulting, and digital sales
transformation.” (Digital Marketing Services, 2023). The Ad Goats is currently focusing on ad
management on different channels namely Facebook, Instagram, Google, TikTok, Amazon and
LinkedIn. With additional services and add-on options, more customers will be attracted and in
turn, The Ad Goats can scale their business. Strategy 1: Adjust Pricing Model
Definition: Each plan is limited to a number of services provided. For example, a Starter Plan
provides 1 paid media channel only, while the Established Plan provides up to 3 paid media
channels. To increase revenue, options to provide add-ons or additional services that are
currently not in the plan would attract additional revenue for the agency. In addition to add-ons,
bundling certain plans with add-ons would be a strategy to attract additional revenue for the
agency. The bundling option is available only for new and potential clients or for those who
renew their subscriptions.
Tactic 1: Offer additional options/add-ons for current and potential clients.
Tactic 2: Offer bundling options for current and potential subscribers when checking out or when
renewing subscriptions.
Strategy 2: Offer Free and New Services
Definition: Develop a comprehensive suite of digital marketing services that address different
stages of the customer journey, from awareness to conversion.
Tactic 1: Offer a free paid media audit to attract new clients.
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